News: In the News

Tile Shop Halts Stock Deregistration As It Fights Investor Suits

Offit Kurman Attorney Featured on Law360

As Published in Law360 

By Rose Krebs | November 12, 2019

Tile Shop Holdings Inc. said Monday that it has halted the process to deregister its stock per an order from the Delaware Chancery Court after investors filed derivative suits last week seeking to thwart what they contend is a takeover attempt led by the company's former CEO.

Tile Shop said it had intended to file forms with the U.S. Securities and Exchange Commission this week to move forward with plans announced last month to delist its common stock from Nasdaq and deregister its stock under SEC regulations, meaning it would not have to file periodic financial reports with the regulatory agency.

Last week, two investment groups K-Bar Holdings LLC and Wynnefield Capital Inc. filed derivative suits asserting that the company's founder and former CEO Robert A. Rucker, who sits on the company’s board, and certain other directors are engaged in a scheme to take control of the company by purchasing stock without paying a fair price.

K-Bar asked the court to temporarily bar the directors from purchasing more company stock and halt the deregistration process. A hearing was scheduled for late Friday afternoon, with no order officially posted as of Tuesday afternoon. Tile Shop said Monday that it was taking measures to meet a temporary court order.

 

Continue reading on Law360>>

ABOUT OFFIT KURMAN

Offit Kurman, a full-service AmLaw 200 law firm with offices throughout the East Coast and in Southern California, serves dynamic businesses, individuals and families. Founded in 1987, the firm’s 280+ attorneys counsel clients across more than 30 areas of practice. Offit Kurman helps maximize and protect business value and personal wealth by providing innovative and entrepreneurial counsel that focuses on clients’ business objectives, interests and goals. The firm is distinguished by the quality, breadth and global reach of its legal services and a unique operational structure that encourages a culture of collaboration.